Monday, September 25, 2017

Defined-Benefit Pension Plans and Teacher Retention from the National Institute on Retirement Security

“Pensions Improve Quality of U.S. Public
Education System and Reduce Teacher Turnover. Magnetic Effect of Pensions
Helped Retain 32,000 Teachers, Saved Up to $284 Million Nationally in Turnover
Costs.

“WASHINGTON, D.C., September 25,
2017 - A new research brief analyzing the effectiveness of
defined benefit (DB) pensions on teacher retention and productivity finds that
pensions play a critical role in recruiting and retaining highly productive
teachers. As a result, pensions help increase schools' effectiveness, which
benefits students. Additionally, DB pensions save school districts money by
reducing expensive teacher turnover costs.

“These findings are contained in a new research brief from the
National Institute on Retirement Security (NIRS), Revisiting the Three Rs of Teacher Retirement
Systems: Recruitment, Retention and Retirement.

“‘The reality we face is that the nation's schools continue to
struggle with a growing shortage of teachers, and
that teachers are paid on average as much as 60 percent less than
similarly educated professionals across the globe,’ says Diane Oakley,
NIRS executive director. ‘Pensions play an essential role in recruiting and
retaining our best and most experienced teachers. It's critical that states
continue to leverage the magnetic effect of pensions to help students achieve
at their highest potential.’

In 2009, DB
pensions helped to retain an additional 30,000 teachers nationwide.
Because longer tenured teachers are more effective teachers, the increased
retention that DB pensions bring increases the overall quality of public
education.

Because the
cost of teacher turnover is substantial, the retention effects of DB
pension plans also save school districts money. In 2009, DB pensions saved
school districts between $131 million and $284 million nationally in
teacher turnover costs.

“The National Institute on
Retirement Security is a non-profit,
non-partisan organization established to contribute to informed policymaking by
fostering a deep understanding of the value of retirement security to
employees, employers and the economy as a whole. Located in Washington, D.C.,
NIRS' diverse membership includes financial services firms, employee benefit
plans, trade associations, and other retirement service providers. More
information is available at www.nirsonline.org.
Follow NIRS on Twitter @nirsonline. Contact: Kelly
Kenneally | kkenneally@nirsonline.org | 202.457.8190.”

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